What you need to know about Frontage Holdings Corporation’s investor mix (HKG:1521)

The large shareholder groups of Frontage Holdings Corporation (HKG:1521) have power over the company. Big companies usually have institutions as shareholders, and we usually see insiders owning shares in small companies. Companies that have been privatized tend to have low insider ownership.

Frontage Holdings is not a large company by global standards. It has a market cap of HK$5.0 billion, which means it wouldn’t get the attention of many institutional investors. Our analysis of company ownership, below, shows that institutional investors have bought the company. We can zoom in on the different ownership groups, to learn more about Frontage Holdings.

Check out our latest analysis for Frontage Holdings

SEHK: 1521 Ownership Breakdown August 18, 2022

What does institutional ownership tell us about Frontage Holdings?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

Frontage Holdings already has institutions on the stock register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out the earnings history of Frontage Holdings below. Of course, the future is what really matters.

earnings-and-revenue-growth
SEHK: 1521 Earnings and Revenue Growth August 18, 2022

It appears that hedge funds own 5.0% of Frontage Holdings shares. This is interesting because hedge funds can be very active and militant. Many are looking for medium-term catalysts that will drive the stock price higher. Our data shows that Hangzhou Tigermed Consulting Co., Ltd. is the main shareholder with 50% of the outstanding shares. This essentially means that they have considerable influence, if not absolute control, over the future of the company. Kabouter Management, LLC is the second largest shareholder holding 5.0% of common stock, and Hillhouse Investment Management, Ltd. owns approximately 4.5% of the company’s shares.

While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.

Insider ownership of Frontage Holdings

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders hold certain shares of Frontage Holdings Corporation. As individuals, insiders collectively own HK$107 million of the HK$5.0 billion company. Some would say this shows the alignment of interests between shareholders and the board. But it might be worth checking to see if these insiders have sold.

General public property

With a 21% stake, the general public, made up mostly of individual investors, has some influence over Frontage Holdings. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Private Company Ownership

Our data indicates that private companies hold 7.9% of the company’s shares. It might be worth exploring this further. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Ownership of a public company

Public companies are found to hold 50% of Frontage Holdings issued shares. It may be a strategic interest and both companies may have related business interests. They may have separated. This exploitation probably deserves further investigation.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Frontage Holdings, we need to consider many other factors.

Many find it useful to take an in-depth look at a company’s performance in the past. You can access this detailed graph past profits, revenue and cash flow.

But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Calculation of discounted cash flows for each share

Simply Wall St performs a detailed calculation of discounted cash flow every 6 hours for every stock in the market, so if you want to find the intrinsic value of any company, just search here. It’s free.

Comments are closed.